Life insurance that can help build your future
An IUL gives your family lifelong protection and gives you cash value growth tied to a market index, with a floor that protects against index losses.
IUL, in plain English
An Indexed Universal Life policy is permanent life insurance with a cash value account. Part of each premium pays for the insurance, and the rest goes into cash value.
That cash value earns interest based on how a market index, like the S&P 500, performs, up to a limit called a cap. If the index goes down, a floor, often 0%, keeps your cash value from losing money because of the index.
When the policy is set up and funded properly, you may be able to access the cash value later through policy loans, which are generally not taxed as income. People use this for retirement income, college costs, or emergencies.
What an IUL can do
- Lifelong death benefit for your family
- Cash value growth linked to an index
- Protection from index losses
- Tax-advantaged access to cash value
- Living benefits on many policies
Who an IUL tends to fit
Often a good fit
- You want lifelong coverage, not just 20 years
- You've maxed out or don't have access to other retirement accounts
- You can commit to funding it for the long term
- You want another tax-advantaged bucket for retirement
Probably not the right fit
- You just need the most coverage for the lowest price (term may be better)
- Your budget is tight or unpredictable
- You'd need the money back in a few years
- You're looking for a guaranteed investment return
IUL is life insurance, not an investment, and it isn't right for everyone. We'll run the numbers with you and give you an honest answer.
IUL questions
Can I lose money in an IUL?
The floor protects your cash value from index losses, but policy fees and the cost of insurance are still deducted. If a policy is underfunded, it can lose value or lapse. That's why proper design and funding matter.
What's a cap?
The cap is the maximum index-linked interest your policy can earn in a period. Caps vary by company and can change over time.
How is the cash value taxed?
Cash value grows tax-deferred. Policy loans are generally not taxed as income while the policy stays in force. Rules vary, so we recommend talking with a tax professional too.
How long before the cash value builds up?
IULs are long-term tools. Most of the benefit shows up after many years of consistent funding, not in the first few.
See what an IUL could look like for you
We'll build a personalized illustration and walk through it together.